Omnicom Stock Buy Hold or Sell Recommendation

OMC
 Stock
  

USD 79.76  1.00  1.27%   

Considering the 90-day investment horizon and your highly speculative risk level, our recommendation regarding Omnicom Group is 'Strong Buy'. Macroaxis provides Omnicom buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Omnicom positions. The advice algorithm takes into account all of Omnicom's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Omnicom's buy-and-hold perspective. Please check Omnicom Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Omnicom and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Omnicom Group.

Execute Omnicom Buy or Sell Advice

The Omnicom recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Omnicom Group. Macroaxis does not own or have any residual interests in Omnicom Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Omnicom's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell OmnicomBuy Omnicom
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Details

Reporting Quality (M-Score)

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For the selected time horizon Omnicom Group has a Risk Adjusted Performance of 0.1951, Jensen Alpha of 0.1613, Total Risk Alpha of 0.1434, Sortino Ratio of 0.1135 and Treynor Ratio of 0.2313
Macroaxis provides unbiased recommendation on Omnicom Group that should be used to complement current analysts and expert consensus on Omnicom Group. Our trade recommendations engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Omnicom is not overpriced, please check all Omnicom Group fundamentals, including its price to book, total debt, number of employees, as well as the relationship between the ebitda and cash flow from operations . Given that Omnicom Group has a price to earning of 12.73 X, we recommend you to check out Omnicom Group market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Omnicom Trading Alerts and Improvement Suggestions

The company has 6.38 B in debt with debt to equity (D/E) ratio of 1.75, which is OK given its current industry classification. Omnicom Group has a current ratio of 0.93, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Omnicom until it has trouble settling it off, either with new capital or with free cash flow. So, Omnicom's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Omnicom Group sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Omnicom to invest in growth at high rates of return. When we think about Omnicom's use of debt, we should always consider it together with cash and equity.
Over 95.0% of Omnicom shares are owned by institutional investors
On 12th of October 2022 Omnicom paid $ 0.7 per share dividend to its current shareholders
Latest headline from news.google.com: Fake Eli Lilly account may cost Twitter millions - The Washington Post

Omnicom current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Omnicom analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Omnicom analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price77.64
Target Median Price80.00
Target High Price95.00
Recommendation Mean2.60
Number Of Analyst Opinions11
Target Low Price57.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Omnicom Returns Distribution Density

The distribution of Omnicom's historical returns is an attempt to chart the uncertainty of Omnicom's future price movements. The chart of the probability distribution of Omnicom stock daily returns describes the distribution of returns around its average expected value. We use Omnicom Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Omnicom returns is essential to provide solid investment advice for Omnicom.
Mean Return0.24Value At Risk-2.09
Potential Upside3.25Standard Deviation1.72
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Omnicom historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Omnicom Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Omnicom is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Omnicom Group backward and forwards among themselves. Omnicom's institutional investor refers to the entity that pools money to purchase Omnicom's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Zwj Investment Counsel IncCommon Shares3.8 K315 K
Zweig Advisers LlcCommon Shares52 K4.3 M
Zurich Insurance Group LtdCommon Shares12.5 K795 K
Zurich Insurance Group LtdCommon Shares12.5 K1.1 M
Zurich Insurance Group LtdCommon Shares12.5 K916 K
Zurich Insurance Group LtdCommon Shares12.5 K906 K
Zurich Insurance Group LtdCommon Shares12.5 K1000 K
Note, although Omnicom's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Omnicom Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(165.5 M)(156 M)(195.7 M)(102.2 M)(117.53 M)(126.81 M)
Depreciation Amortization and Accretion292.9 M282.1 M264 M231.5 M208.35 M225.46 M
Net Cash Flow or Change in Cash and Cash Equivalents397 M793.8 M(143.6 M)653.3 M751.29 M810.61 M
Net Cash Flow Business Acquisitions and Disposals(308.8 M)(26.3 M)(42 M)69.4 M79.81 M86.11 M
Issuance Purchase of Equity Shares(575.4 M)(557.7 M)(568.3 M)(603.7 M)(694.25 M)(749.06 M)
Issuance Repayment of Debt Securities(1.1 M)388.4 M(18.1 M)214.4 M192.96 M235.3 M
Payment of Dividends and Other Cash Distributions(505.4 M)(515.2 M)(548.5 M)(564.3 M)(507.87 M)(547.97 M)
Net Cash Flow from Financing(1.34 B)(1.44 B)(1.22 B)(408.4 M)(1.39 B)(1.5 B)
Net Cash Flow from Investing(115.4 M)(221.8 M)(30.9 M)(136.1 M)(709.2 M)(727.86 M)
Net Cash Flow Investment Acquisitions and Disposals(7.3 M)66.9 M15.9 M1.9 M2.19 M2.24 M
Net Cash Flow from Operations2.02 B1.72 B1.86 B1.72 B1.95 B1.76 B
Effect of Exchange Rate Changes on Cash(75.5 M)227.9 M(203 M)50.2 M57.73 M62.29 M
Share Based Compensation93.4 M80.2 M70.5 M72.5 M83.38 M78.2 M

Omnicom Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Omnicom or Communication Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Omnicom's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Omnicom stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.16
β
Beta against DOW1.01
σ
Overall volatility
1.74
Ir
Information ratio 0.09

Omnicom Volatility Alert

Omnicom Group has relatively low volatility with skewness of 0.38 and kurtosis of 0.12. However, we advise all investors to independently investigate Omnicom Group to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Omnicom's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Omnicom's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Omnicom Fundamentals Vs Peers

Comparing Omnicom's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Omnicom's direct or indirect competition across all of the common fundamentals between Omnicom and the related equities. This way, we can detect undervalued stocks with similar characteristics as Omnicom or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Omnicom's fundamental indicators could also be used in its relative valuation, which is a method of valuing Omnicom by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Omnicom to competition
FundamentalsOmnicomPeer Average
Return On Equity36.43 %(0.31) %
Return On Asset5.38 %(0.14) %
Profit Margin9.13 %(1.27) %
Operating Margin16.53 %(5.51) %
Current Valuation20.12 B16.62 B
Shares Outstanding203.92 M571.82 M
Shares Owned by Insiders1.36 %10.09 %
Shares Owned by Institutions94.85 %39.21 %
Number of Shares Shorted9.43 M4.71 M
Price to Earning12.73 X28.72 X
Price to Book5.88 X9.51 X
Price to Sales1.13 X11.42 X
Revenue14.28 B9.43 B
Gross Profit2.7 B27.38 B
EBITDA2.36 B3.9 B
Net Income1.3 B570.98 M
Cash and Equivalents3.29 B2.7 B
Cash per Share16.15 X5.01 X
Total Debt6.38 B5.32 B
Debt to Equity1.75 %48.70 %
Current Ratio0.95 X2.16 X
Book Value Per Share13.47 X1.93 K
Cash Flow from Operations1.46 B971.22 M
Short Ratio5.27 X4.00 X
Earnings Per Share6.22 X3.12 X
Price to Earnings To Growth1.10 X4.89 X
Number of Employees71.7 K18.84 K
Beta0.88-0.15
Market Capitalization16.14 B19.03 B
Total Asset22.11 B29.47 B
Retained Earnings7.36 B9.33 B
Working Capital(2.24 B)1.48 B
Current Asset11.98 B9.34 B
   Acquisition by Gerstein Mark D of 356 shares of Omnicom subject to Rule 16b-3 [view details]

Omnicom Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Omnicom . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Omnicom Buy or Sell Advice

When is the right time to buy or sell Omnicom Group? Buying financial instruments such as Omnicom Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables7.83 B7.81 B8.47 B7.52 B
Inventories1.26 B1.1 B1.2 B1.08 B

Use Investing Ideas to Build Portfolios

In addition to having Omnicom in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Financials Thematic Idea Now

Financials
Financials Theme
Companies that provide financial services to business or retail customers. The Financials theme has 20 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Financials Theme or any other thematic opportunities.
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Please check Omnicom Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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Is Omnicom's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Omnicom. If investors know Omnicom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Omnicom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.073
Market Capitalization
15.9 B
Quarterly Revenue Growth YOY
0.002
Return On Assets
0.0538
Return On Equity
0.36
The market value of Omnicom Group is measured differently than its book value, which is the value of Omnicom that is recorded on the company's balance sheet. Investors also form their own opinion of Omnicom's value that differs from its market value or its book value, called intrinsic value, which is Omnicom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Omnicom's market value can be influenced by many factors that don't directly affect Omnicom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Omnicom's value and its price as these two are different measures arrived at by different means. Investors typically determine Omnicom value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Omnicom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.